HCP Slides Again After Sudden CEO Ouster

By Ben Levisohn

The healthcare REIT is busy trying to convince investors that there’s nothing behind the move other than the fact that they wanted a new leadership style when the place Jones Lang LaSalle’s (JLL) Lauralee Martin at the helm. Cowen’s James Sullivan explains why the move continues to shake up investors:

The CEO announcement took investors by surprise, and we may see additional share volatility as shareholders digest the transition. The apparent suddenness of the announcement, and the age difference between Flaherty and Martin, may also raise questions about Martin’s tenure and the new succession plans.

Management Reiterated Its Commitment To The Current Strategy. Still, it is natural to assume that with a new leader, some changes to the management team may be made (even if in the form of additions to the team). And given Martin’s experience and comments on the call, we could see an increased emphasis on international opportunities, which may raise concerns with existing shareholders.

HCP has dropped 1.6% to $39.17 today, while competitor Health Care REIT (HCN) has gained 0.6% to $61.97, while Ventas (VTR) has risen 0.5% to $62.31.

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The blog is written by Ben Levisohn, a former stock trader who has covered financial markets for the Wall Street Journal, Bloomberg and BusinessWeek.